Hartshead Resources NL (ASX: HHR): Re-iterating key guidances: industry partner by the end of March, FID by mid 2023
• Hartshead published its half year financial report for the six month period ending 31/12/2022. The cash position as at the end of December had already been reported and there are no surprises in the financials.• Hartshead continues to hope to announce a farm-out partner over the coming weeks. This would provide clarity on the funding of the project as well as well as an external industry valuation for the assets.
• FID for the Phase I field development could be taken by mid 2023.
• The completion of the phase I basis of design engineering study with Shell for the preferred export route and tie-in option to Shell infrastructure will also take place later in 2023.
• The platforms are expected to be ordered during the summer. They are the critical items to be able to deliver first gas by YE24.
• A new CPR will be prepared to better define the 2C contingent resources associated with Phase II (Hodgkin and Lovelace).
• We re-iterate our target price of A$0.18 per share, representing ~5x the current share price.
33rd Offshore Licensing Round
Hartshead has submitted bids in the UK 33rd Offshore Licensing Round. Awards are expected around mid 2023.
Valuation
Our Core NAV for Hartshead assuming a US$100 mm farm-out and 85% chance of development stands at ~A$0.12/sh. Adding phase II leads to a ReNAV of ~A$0.18/sh.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.